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| Precautionary Savings and the Importance of Business Owners National Bureau of Economic Research [NBER]  Nov. 15, 2005 Excerpt: In this paper, [the authors] show the pivotal role business owners play in estimating the importance of the precautionary saving motive. Since business owners hold larger amounts of wealth than other households for non-precautionary reasons and also face highly volatile income, they induce a correlation between wealth and income risk regardless of whether or not a precautionary saving motive exists. |
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